Informative note on the increase to minimum wages

In the session of the National Commission on Minimum Wages held on December 1 of this year, the Council of Representatives, comprised by the three sectors, Government, Workers and Employers, unanimously agreed to increase minimum wages under the following terms:

The minimum wage of $141.70 is increased by 9% plus the amount of $16.90, corresponding to the Independent Amount of Recovery (MIR) giving, as a result, a new salary of $172.87 pesos.

In regard to the minimum wage applicable in the North Border Free Zone, the wage of $213.39 is increased by 9% plus the amount of $25.45, corresponding to the MIR giving, as a result, a new salary of $260.34.

In consequence, the increase to the general and professional minimum wages is of 22%, an increase that will be applied as of January 1, 2022.

These increases are well above the inflation forecasted for this year and, without a doubt, they will have a very important effect on the revisions of collective bargaining agreements.

This could cause serious pressure on the labor sector if inflation reaches a level of 7% or higher as a result of the increase to the minimum wage; in this regard, the significant reforms to the Federal Labor Law on this matter, which are already in force, must be taken into consideration. Given that the Federal Center for Labor Conciliation and Registration is already in operation, initial collective bargaining agreements as well as comprehensive revision agreements must be approved by the majority of the workers covered by said agreements through their personal, free, secret and direct vote, for registration and deposit in the aforementioned Center.

Therefore, an efficient work by the companies in the proper management of their labor relationships will be very important in order to avoid possible conflicts and strikes in the processes for the revision of their collective bargaining agreements and in the preparation of plans for the management of labor crises.

We remain truly yours for a more detailed discussion of the contents of this note.